High coviction trades in majors - Westpac

Analysts at Westpac offered further high conviction trades in the majors.

Key Quotes:

"CHF remains our favoured short though our conviction levels have waned mainly due to the currency’s stronger technical picture  in the wake of the failure into parity. Stronger PMI surveys aside, the macro story remains CHF negative - weak retail sales, broad deflationary conditions while the SNB continues to underscore it has not reached the lower bounds of NIRP.

Other notable view changes: our overall GBP score has turned much less negative, though that is entirely a function of our model which is adopting a contrarian bullish stance as gilt yields continue to surge.  Our JPY score has firmed too, the near term macro backdrop more supportive as markets start to build a Trump risk premium and as a broad consensus begins to emerge that the BoJ’s yield curve control policy is a form of implicit tapering."